Equity Analysis /
Thailand

Humanica PCL: Emerging at 'Giga' speed

  • >40% earnings growth seen in 2023 (with scope of upside)

  • Workplaze—a game changer

  • 4Q22 to resume a growth mode

Napon Jaisan
Napon Jaisan

Equity Research Analyst

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Bualuang Securities
24 January 2023

2022 was a challenging year for HUMAN—its stock price fell 9%, led by the weak sentiment for tech stocks in general coupled with heavy extra expenses booked. We believe that HUMAN’s earnings will move into a new fast growth phase in 4Q22-2023. Its valuation should be re-rated during a cyclical uptrend. BUY!

>40% earnings growth seen in 2023 (with scope of upside)

The firm targets revenue growth of more than 40% in 2023, driven by the full-year consolidation of DataOn (seven months in 2022), HUMAN’s business recovery (25% revenue growth), and DataOn sales growth of 25-30%. Management said that net profit growth will exceed revenue growth in 2023 (implying earnings growth exceeding 40%). In 9M22, HUMAN booked three major extra expenses totaling Bt56m (24% of our 2022 core profit assumption) including professional fees from acquisition of DataOn (Bt6m), the impairment of its investment on convertible bonds in CXA (Bt39m), and losses on valuation of financial assets (Bt11m).